Bitcoin Prices Plunge Below $40,000 To Reach Lowest Since September

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Bitcoin price dropped below $40,000 today, trading at its lowest level in more than three months.

The world’s most prominent digital currency fell as low as $39,677.65, coindesk data shows.

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At this point, it had reached its lowest price since September 21, additional CoinDesk data shows.

The digital currency only briefly traded at this level, quickly bouncing back and crossing $42,000 later today.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Analysts offer different perspectives when interpreting these latest price movements.

“I think the continuation of intense selloffs, unexpected margin calls, and forced liquidations in the broader cryptocurrency market is driving the bitcoin price below $40,000,” said John Ideluca, Founder and CEO of Multi-Strategy Fund bunz capital, said earlier today.

“January has also historically been a month where bitcoin crashed substantially before the start of the subsequent bear market, which may add some downward psychological pressure on bitcoin traders,” he said.

Iadeluca noted that bitcoin saw a sharp drop in January 2018 just like 2018.

Joe Depasquale, CEO of Cryptocurrency Hedge Fund Manager Bitbull Capital, also weighed.

“Bitcoin has been in a downtrend with widespread selling pressure since late December and the current price action is the result of it losing several key support levels,” he said.

“As market participants aggressively crave potential downside prices during this downtrend, each subsequent price drop results in cascading liquidations,” DiPasquale said.

Andrew Rosso, an internet and technology lawyer, also offered his point of view, saying that fear from both consumers and investors is fueling sales and driving bitcoin prices down.

He noted consumer fears based on “previous data collected over the past months, especially around June of 2021,” explaining that this is causing bitcoin to fall.

Rossow also brought up “fears that the federal government is going to focus strictly on inflation control rather than a macro perspective of these drops” as a factor putting downward pressure on the digital currency’s price.

He explained the situation in detail.

“It is my personal opinion that since the government has recently turned its attention to inflation, it has created concern for consumers – it is very easy to get caught up in the past behavior of the market.”

Rosso described the “sharp sell-off” with “a substantial portion of consumers/investors expressing that fear”.

“The biggest takeaway we see with these kinds of drops and consumer behavior based on those drops is speculation and a fear that bitcoin will never recover.”

“These ‘false signals’ or false indicators guide individuals to forcibly liquidate, sell, or otherwise believe that bitcoin is in trouble. This.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, eos and sol.


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